Page 41 - Mutual Funds

From Jio Financial to Zerodha, Indian mutual fund managers going 'passive'

Fund houses have launched 23 passive funds so far this year, half the 45 launched in 2022 and well above 10 in 2019, data from Value Research shows

SBI Funds completes liquidation of assets in Franklin Templeton MF

SBI Funds Management Ltd on Tuesday said it has completed the liquidation of assets in the six shuttered debt schemes of Franklin Templeton Mutual Fund and distributed Rs 27,508 crore to the latter's unitholders. Franklin Templeton in April 2020 announced shutting down of the six debt mutual fund schemes, citing redemption pressures and lack of liquidity in the bond market. With this, SBI Funds Management has liquidated 217 securities and disbursed around Rs 27,508 crore which constitutes 109 per cent of the value of the securities as on date of winding up -- April 23, 2020, the company said in a statement. It further said that the liquidation activity was done without creating any market dislocation in order to get the best liquidation value and safeguard the interest of unitholders of Franklin Templeton Mutual Fund (FTMF). The company was directed by the Supreme Court in 2021 to undertake the exercise of disbursement and liquidation of assets of the six wound-up debt schemes of .

HDFC MF pares 2.12% stake in Garden Reach Shipbuilders and Engineers

HDFC Mutual Fund (MF) has pared 2.12 per cent stake in Garden Reach Shipbuilders and Engineers (GRSE) between February 28 and August 17, held by its schemes. The MF, informing the bourses, said it held a 7.4 per cent stake in GRSE as on February 28, and this has come down to 5.28 per cent as on August 17. HDFC Balanced Advantage Fund is the MF scheme that holds a stake in GRSE. As on June 30, this scheme held a 6.04 per cent stake in the company, BSE data showed. On the other hand, foreign portfolio investors (FPIs) held a 3.11 per cent stake in GRSE as on June 30, 2023. The government holds 74.5 per cent of the city-based PSU. GRSE shares rose 28.53 per cent during the week to close at Rs 748.55 in NSE with a high volume of trading. Foreign Portfolio Investors hold 3.11 per cent in the PSU warship maker as on June 30. Other PSU port stocks like Mazgaon Dock and Cochin Shipyard also rose during the week.

ESG funds continue to see outflow, Rs 520 cr pulled out in June quarter

Sustainable or ESG (environmental, social, and governance) funds in the country witnessed an outflow of Rs 520 crore in the April-June quarter of this fiscal, according to a report by Morningstar. This was higher than a withdrawal of Rs 470 crore seen from such funds in the preceding quarter. "While initial fund launches have attracted significant interest and flows, we have yet to witness continued flows for sustainable funds after their initial fund launch period. This has resulted in the lack of a discernible trend on a quarterly basis," the report noted. Continuing the trend of outflow, the year-to-date 2023 withdrawal was at Rs 1,060 crore as compared to Rs 1,020 crore in the preceding year. This is in contrast to the infusion of Rs 1.83 lakh crore for the year to date in the overall fund market. The report revealed that the coronavirus pandemic led to a marked increase in investor interest and fund launches for sustainable funds globally. "While the Indian sustainable fund .

New entrants slow off the blocks in top-heavy mutual fund industry

Five new fund houses Rs 12,400 crore AUM during their initial period

Bandhan Sterling Value Fund: Setting new benchmarks and surpassing peers

The fund's month-end assets under management increased to Rs 6,122 crore in June 2023 from Rs 2,339 crore in June 2020

Helios Capital gets Sebi's approval to launch mutual fund business

Helios Capital has received capital markets regulator Sebi's approval to launch a mutual fund business, Samir Arora, the main founder of the company announced. Helios Capital Management PTE Ltd, which is the business of portfolio management services, applied for a mutual fund licence with the Securities and Exchange Board of India (Sebi) in February 2021. "I am very happy to announce that Sebi has granted approval to Helios Mutual Fund...We need your wishes and support to make this new venture a success," Arora, who is also the fund manager at Helios Capital, wrote at X platform, formerly known as Twitter, on Thursday. After quitting Alliance Capital 20 years ago, Arora is re-entering the 43-player mutual fund industry. He was the Chief Investment Officer of Alliance Capital's Indian mutual fund business. In September 2022, Helios Capital received Sebi's in-principle approval to float the mutual fund business. Zerodha Broking Ltd and Old Bridge Capital Management Pvt Ltd are the

Mutual funds' retail asset growth pips the overall AUM, shows data

Among the top 10 fund houses, Kotak Mahindra MF and Mirae Asset MF logged the highest growth in retail assets at 70 per cent and 66 per cent, respectively

SIP inflows top Rs 15,000 crore, help offset redemption pressure

Smallcap schemes continue to be a big draw

MFs step up buying as FPI flows thin out; other DIIs remain sellers

Invest Rs 7,700 crore in July, highest in four months

Sebi looking to introduce 'MF Lite' regulations for passive funds

Capital markets regulator Sebi is engaged with the mutual fund industry to introduce 'MF Lite' regulations for passive funds, a move that will reduce the compliance burden and foster innovation. A passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Fund of Funds investing in ETFs. "Since the current MF regulatory framework was built around active fund management, Sebi is planning to introduce Mutual Fund Lite regulations for passive funds, wherein investment decisions are not discretionary, but tied to changes in the underlying benchmark index," the regulator said in its annual report for 2022-23, which was released on Monday. These new regulations are expected to significantly reduce the compliance requirements of passive funds and foster innovation in the passive fund ecosystem, it added. The regular mutual fund schemes, which raise money from the public, have to

Punjab & Sind Bank plans to foray into MF space; to finalise partner by Sep

In a bid to expand fee-based income, state-owned Punjab & Sind Bank is planning to foray into mutual fund space and hopes to find a partner by September, a senior official has said. "The bank has already floated a Request for Proposal to finalise a partner in the Fintech space, and we hope to conclude the process soon," Punjab & Sind Bank managing director Swarup Kumar Saha told PTI. He expressed hope that the bank would be able to zero in on a partner by the end of the second quarter and start operations during the current financial year. The asset management business would help the bank in increasing fee income by cross-selling products, he noted. There are 44 asset management companies operating in India. Assets Under Management (AUM) management by these companies stood at Rs 44,39,187 crore as of June 30, 2023. The AUM of the Indian MF Industry has grown from Rs 8.11 lakh crore at June-end 2013 to Rs 44.39 lakh crore as of June 30, 2023, more than a five-fold increase in a

MF houses go slow on NFOs, file draft papers for 59 schemes in Apr-Jul

With a wide array of existing mutual fund schemes, asset management companies are going slow on launching new ones in a highly competitive landscape as they filed draft documents for 59 new fund offerings (NFOs) in the first seven months of the year. In comparison, draft papers for 70 NFOs were filed in the year-ago period. In 2022, a total of 228 new schemes were floated against 140 in 2021, industry data showed. Moreover, the remaining months of 2023 are not expected to see NFO numbers anywhere close to those of 2022 or 2021, SAS Online founder and CEO Shrey Jain said. The reasons behind the decline in NFOs could be a combination of the factors as the mutual fund industry's dynamics are influenced by various internal and external factors. "AMCs may be concentrating on managing and promoting their existing schemes, rather than launching new ones. This strategy allows them to maximise the returns for existing investors and maintain stable assets under management," Jain said. Also,

Computer Age Management reports Q1 consolidated profit at Rs 75.67 cr

Computer Age Management Services Ltd has reported a consolidated profit for the April-June 2023 quarter at Rs 75.67 crore, the company said on Saturday. The company, one of the largest registrar and transfer agents in the mutual fund industry, has reported a consolidated profit at Rs 64.60 crore in the corresponding period of last year. For the year ending March 31, 2023, the consolidated profit was at Rs 284.63 crore. Total consolidated revenue during the quarter under review grew to Rs 2,709.77 crore from Rs 2,410.82 crore registered year ago. For the full year ending March 31, 2023, the consolidated total revenue was at Rs 9,986.40 crore. "The Indian mutual fund industry grew by 6.4 percent quarter-on-quarter to reach Rs 43.8 trillion in AAUM and is well-positioned for future growth. Our assets under management grew by 6.8 per cent quarter-on-quarter, ahead of the industry, to cross the Rs 30 trillion mark," company Managing Director Anuj Kumar said. "We also had a higher shar

Backstop fund facility will shield debt MF investors from fire sale

Alongside Corporate Debt Market Development Fund, risk-o-meter and PRCM introduced earlier enhance investor protection

Double-digit price erosion in the US generic market is getting arrested.

After a poor run in 2022, Pharma and healthcare funds are up 22.4 per cent year-to-date. The fundamental reason behind this upsurge is the improving outlook of the US generic market, says Mr. Chirag

As a first time earner, here are your most ideal investment options

Unless you are good at building your own stock portfolio, it is advisable to invest through mutual funds or index ETFs.

Commission payout by top 10 mutual funds up 14% in FY23, shows data

Sustained rise in flows via SIPs lifts distributor share in AUM

Hybrid schemes gain traction; attract Rs 14,000 cr in June qtr after change

After witnessing incessant outflow for three consecutive quarters, hybrid mutual fund schemes have caught investors' fancy and attracted over Rs 14,000 crore for three months ended June, following a recent change in taxation for debt funds. This was way higher than the Rs 10,084 crore inflow seen in hybrid schemes in the April-June quarter of 2022, data from the Association of Mutual Funds in India (Amfi) showed. In addition, the asset base of hybrid funds and investors' account or folio numbers of such schemes increased in the quarter under review. Hybrid funds are mutual fund schemes that typically invest in a combination of equity and debt securities and sometimes in other asset categories such as gold. These funds appeal more to investors with a moderate or low-risk profile. Hybrid funds are good investment options as they reduce the volatility associated when participating in equity markets while simultaneously providing stability in the fixed-income market. Going by the data

Can the Jio-BlackRock joint venture stir the AMC pot? What analysts say

Growth expectations of incumbent AMC players may get trimmed in the medium-to-long term, analysts said, once the Jio-BlackRock JV unveils its plans